Finding Text
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.